S-Energy stock soars on large-scale solar power project deal

[Courtesy of S-Energy Co.]

South Korea’s S-Energy Co. saw its stock price soar on Wednesday, buoyed by the news that it signed a large-scale supply contract for a solar power project in Taean, South Chungcheong Province.

S-Energy shares were trading at 2,030 won ($1.47) as of 11:20 a.m. on Wednesday, up 10.33 percent from the previous trading session.

On Tuesday, S-Energy announced after market closing that it signed a supply contract with GS Engineering & Construction Corp. for the Taean solar power project.

The contract is worth about 17.4 billion won, or 10.2 percent of the company’s consolidated sales last year. The contract period is until November 21.

Meanwhile, rare earth mineral-related stocks gained ground on Wednesday morning, following former U.S. President Donald Trump, the Republican presidential candidate’s comments on tariffs on China.

As of 11:24 a.m., Union Co. shares were up 5.14 percent at 5,320 won while those of Union Materials Corp. gained 2.39 percent to 2,790 won.

Union Materials produces ferrite magnets, a material that has gained attention as an alternative to rare earth elements and Union is its parent company.

Stocks related to rare earths fluctuate whenever trade conflicts between the United States and China come into focus.

This is due to expectations that China may restrict rare earth exports in response to U.S. export sanctions.

In response to economists’ suggestion that a 60 percent tariff on Chinese goods would effectively end U.S.-China trade relations, Trump said in a Bloomberg Businessweek interview on Tuesday (local time) that “I did 50 percent during my first term, and I haven’t heard of 60 percent.”

Although he did not clearly state his position, his mention of tariffs on China highlighted the potential for U.S.-China trade conflicts in the market.

In other news, Hanwha Engine Co. saw its shares surge by nearly 8 percent on Wednesday morning, following a stock target price hike by securities firms.

As of 11:26 a.m., Hanwha Engine shares were trading at 15,680 won, up 7.91 percent from the previous day.

Earlier in the day, Korea Investment & Securities Co. projected that Hanwha Engine will post sales of 288.5 billion won and operating profit of 18.8 billion won in the second quarter, beating the market consensus by 7.6 percent and 41 percent, respectively.

The securities company raised its target price from 16,000 won to 20,000 won, anticipating another earnings surprise in the second quarter following the first quarter.